Paragraph 5

United Kingdom

(1)

This paragraph applies where—

(a)

a person (“P”) has made a loan to a relevant person,

(b)

the loan was made on or after F19 December 2010, and

(c)

before the end of 5 April 2019, A or B acquires (whether or not for consideration) a right to payment of the whole or part of the loan.

(2)

The amount of the loan in respect of which A or B acquires a right to payment is to be treated—

(a)

for the purposes of paragraph 1(1) as an amount, of the loan made by P to the relevant person, that is outstanding immediately before the end of 5 April 2019;

(b)

for the purposes of F2paragraphs 1(4) and 1A(5) and section 554Z3(1) of ITEPA 2003, as an amount of the loan that is outstanding at the time P is treated as taking the relevant step under paragraph 1(1).

(3)

Where a quasi-loan or a loan made by P to a relevant person is replaced, directly or indirectly, by a loan or another loan (the “replacement loan”), references in sub-paragraphs (1) and (2) to the loan are references to the replacement loan.

Annotations

Textual amendments

F1: Words in Sch. 11 para. 5(1)(b) substituted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 6
F2: Words in Sch. 11 para. 5(2)(b) substituted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 30